Machine Readable URAR: “Sir, it’s quite possible this foundation is not entirely stable.”
Why Haven’t Loan Officers Been Told These Facts?
Goodbye 1004, Hello 3.6 UAD (Uniform Appraisal Dataset)
The New Uniform Residential Appraisal Report (URAR)
From FNMA: The Uniform Appraisal Dataset (UAD) 3.6 and Forms Redesign Broad Production Period begins today, January 26, 2026. All lenders are now permitted to submit UAD 3.6 appraisal reports to the Uniform Collateral Data Portal® (UCDP®).
Submission of UAD 3.6 appraisal reports is not yet mandatory; however, lenders that have updated their systems and processes to support UAD 3.6 appraisal reports – including working with an appraisal software provider whose software has been verified for UAD 3.6 – are encouraged to begin integrating appraisal reports that use UAD 3.6 into their workflow. Gradually integrating UAD 3.6 appraisal reports will help lenders prepare for a full transition by November 2, 2026 mandate, when all appraisal reports on loans sold to Freddie Mac or Fannie Mae must use UAD 3.6.
The UAD Redesign project focuses on capturing discrete data and minimizes the dependence on free-form text. This shift helps to reduce subjectivity, enhance impartiality, and improve data consistency. Discrete, machine-readable data will allow stakeholders to implement more streamlined review processes across all property types.
BEHIND THE SCENES: Rocket Mortgage In the News
Rocket Mortgage is back in the news. Several homeowners have retained legal counsel to file a class action lawsuit alleging violations of RESPA Section 8 involving the Rocket family of companies and affiliates.
The plaintiffs may face an uphill legal struggle. The RESPA provision governing class action lawsuits is 12 USC §2605, the RESPA servicing and loss mitigation section. However, the anti-kickback RESPA section, §2607, provides its own relief and penalties for violations but does not expressly provide a class action remedy. Additionally, RESPA Section 8 complaints have a one-year statute of limitations from the time of closing. The plaintiffs must establish extraordinary circumstances to overcome the statute of limitations defence. If either of these defenses is successful in this proceeding, the case could be dismissed before it even begins.
The class-action lawsuit is based on an investigation by the CFPB, which led the Bureau to file a Section 8 lawsuit against Rocket and its affiliates in December 2024. However, just two months later, the CFPB voluntarily dismissed the case, seemingly for political reasons. For more information on the CFPB lawsuit allegations, see LOSJ V5 I3 N182.
The Redfin Nexus
Rocket’s ambitious plan to dominate the residential mortgage market made significant progress with its 2025 acquisition of Redfin, a major national real estate company. According to the Real Estate Settlement Procedures Act (RESPA), this acquisition would allow Rocket to legally pay referral fees to Redfin’s real estate agents. Section 8 of RESPA does not prohibit the payment of referral fees in an employee-employer relationship. Regulation X 12 CFR § 1024.14(g)(1)(vii) “section 8 of RESPA permits an employer’s payment to its own employees for any referral activities.”
March 10, 2025 Rocket Announcement
DETROIT and SEATTLE, March 10, 2025 /PRNewswire/ — Rocket Companies (NYSE: RKT), the Detroit-based fintech platform consisting of mortgage, real estate and personal finance businesses, today announced it has entered into an agreement to purchase Redfin (NASDAQ: RDFN), a leading digital real estate brokerage, in an all-stock transaction for a value of $12.50 per Redfin share, or $1.75 billion of equity value.
Founded in 2004, Redfin is one of America’s most recognized real estate brands, operating a top-three home search platform with more than 1 million for-sale and rental listings and a tech-powered brokerage of more than 2,200 agents.
“Rocket and Redfin have a unified vision of a better way to buy and sell homes,” said Varun Krishna, CEO of Rocket Companies. “Together, we will improve the experience by connecting traditionally disparate steps of the search and financing process with leading technology that removes friction, reduces costs, and increases value to American homebuyers.”
An Opportunity For Enterprising Originators
By acquiring Redfin, Rocket has gained a significant number of referrals that are now less available to other originators. Redfin agents must exercise caution when handling Rocket referrals, as this may create the appearance of a conflict of interest and could damage customer relationships.
Entrepreneurial mortgage originators should aim to leverage the Redfin transition. It’s important to approach Redfin agents with empathy, making it clear that you understand their circumstances and have no intention of undermining or eroding the Redfin-Rocket partnership. Your goal is to help Redfin agents demonstrate to their clients that they genuinely prioritize their customers’ interests.
Tip of the Week – Have a Question About Operations, Sales, Marketing, or Compliance? Email Your Questions to the Loan Officer School Journal.
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Necessary Mailbag Disclosure: The LOSJ is a periodic publication from LoanOfficerSchool.com designed to educate and inform our readers. Please note that we do not provide legal advice, and nothing in the LOSJ should be construed as a legal opinion on specific facts or circumstances. The content serves strictly for informational purposes. We strongly advise readers to consult legal counsel regarding any legal matters or specific questions.